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Iron ore handling to almost double at ESSAR's Vizag terminal

Essar Ports has invested Rs 830 crore to upgrade and double the iron ore handling capacity of its Vizag Terminal (outer harbour) in Andhra Pradesh, a top company official said. ESSAR Ports is also exploring the prospect of setting up four liquefied Natural gas terminals but the sites have not yet been decided.

With the commissioning of the facility next month, Ore handling capacity of the private terminal will go up to 23 million tons per annum as against the present 12.5 million tons at present, a spokesman of the terminal said

Essar Vizag Terminal Ltd (EVTL), the company that bagged 30-year concession from Visakhapatnam Port on Design-Build-Finance-Operate-Transfer (DBFOT) basis, has already ramped up iron ore handling capacity of the terminal from 25,000 tonnes to 70,000 tonnes per day by replacing and modernising the conveyor belt and related infrastructure.

After completion of the expansion work, the loading capacity of the terminal will increase to 1.2 lakh tonnes per day as the facility will be able to berth vessels up to two lakh DWT with a draft of 18 metres on the outer harbour.

“On completion, the upgraded terminal will have a loading rate of 8,000 tonnes per hour which will be among the highest for an Indian port.” The company was awarded the contract in 2012 but it took over the facility only in 2015. Since then, the company has been investing heavily to upgrade it,

The Rs 830-crore investment includes ₹200 crore upfront payments made to Visakhapatnam Port Trust at the time of takeover.

We are determined to cut down spillage and emission to virtually near zero levels he said adding the spillage has already been brought down to less than two per cent.

The Vizag terminal of the ESSARs will become the preferred choice of ore exporters who are based either in Odisha or Goa.

The iron ore handling terminal is an all-weather deep draft facility which includes a receiving and a shipping system.

While the receiving system is a completely mechanised facility that comprises high capacity wagon tipplers for receiving cargo by rakes, a long conveyor system transfers the ore to a stackyard.  The shipping system comprises high capacity reclaimers and ship loaders. The entire facility is being upgraded to achieve high level of efficiency.

 Out of the total investment in the project nearly Rs 560 crore has been mobilised through debt.

The company wants to explore LNG business because it has LNG cargo and customer tie up which are using the fuel. It is exploring the possibility of floating Joint ventures with other companies to up LNG terminals.

At present the state owned Petronet owns LNG terminals at Dahej and Cochin while the Indian oil corporation is putting up a terminal at Ennore Port. The Ennore terminal is expected to be commissioned next year and has a five million ton capacity.


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